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HK Metals… (Class 12 Business Studies SQP 2026-27, Q27)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 4 marks · Short answer

CBSE Class 12 Business Studies sample paper 2026-27: question 27

From the official CBSE sample question paper for 2026-27, section A, question 27, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q27 · 4 marks · Short answerCompetency-basedControlling

HK Metals Limited has set clear standards for production output, defect rate and operating costs. During a monthly review, Mr Himank, the Chairman, received a report from the Accounts Manager, Mr Akhil. He reported that most expenses were within the approved budget. However, the maintenance expenses had exceeded the permissible limit set by management.
Mr Himank did not interfere in routine matters but instructed Mr Akhil to investigate the cause of increase in maintenance expenses.

  1. A)

    Name and explain the principle of managerial control applied by Mr Himank in the above case.

    2 marks
  2. B)

    Identify and state the subsequent step in the controlling process that must be undertaken by Mr Akhil to ensure that standards are accomplished.

    2 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Mr Himank ignored routine matters and focused on one large deviation.

Hint 2

What follows analysing deviations in the controlling process?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A) The principle applied is Management by Exception: trying to control everything results in controlling nothing, so only significant deviations beyond the permissible limit (here, maintenance expenses) are brought to top management's notice.

    2 marks

  2. B) The next step is Taking Corrective Action: as the deviation is beyond the acceptable range in an important area, its cause must be removed so it does not recur and standards are achieved; if it cannot be corrected, the standards may be revised.

    2 marks

Answer: A) Management by Exception. B) Taking Corrective Action.

Where the marks are

  • A) 1 naming + 1 explanation
  • B) 1 identification + 1 explanation

Revise the chapter

  • Chapter: Controlling (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Controlling, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.